TITLE V--RESERVE FORCES SUSTAINMENT

Sec. 502. Authority to pay transient housing charges for members performing active duty for training at locations over 50 miles from residence.

Sec. 503. Sense of Congress concerning quarters allowance during service on active duty for training.

Sec. 504. Sense of Congress concerning military leave policy.

Sec. 505. Group dental insurance plan for members of Selected Reserve.

Sec. 506. Local community and military personnel mutual benefits program.

Sec. 507. Commendation of Reserve Forces Policy Board.

TITLE I--FINDINGS AND PURPOSES

SEC. 101. FINDINGS.

Congress finds the following:

(1) The end of the Cold War and the ensuing period of worldwide readjustment and reassessment has brought with it a host of new military challenges and opportunities.

(2) Never before in time of peace have the Armed Forces been engaged in tasks in so many parts of the world.

(3) The Persian Gulf War demonstrated the validity of the Total Force Policy, which places heavy reliance upon the reserve components for the execution of military missions.

(4) The basic laws governing the organization and administration of the reserve components have not been comprehensively reexamined since the enactment in 1967 of the Reserve Forces Bill of Rights and Vitalization Act (Public Law 90-168).

(5) A number of systemic problems have arisen under the existing reserve component statutory scheme which was designed in light of the perceived threats and challenges of the Cold War era.

SEC. 102. PURPOSES.

The purpose of this Act is to revise the basic statutory authorities governing the organization and administration of the reserve components of the Armed Forces in order to recognize the realities of reserve component partnership in the Total Force and to better prepare the American citizen-soldier, sailor, airman, and Marine in time of peace for duties in war.

TITLE II--RESERVE COMPONENT STRUCTURE

SEC. 201. RESERVE COMPONENT COMMANDS.

(a) ESTABLISHMENT- (1) Part I of subtitle E of title 10, United States Code, is amended by inserting after chapter 1005 the following new chapter:

‘CHAPTER 1006--RESERVE COMPONENT COMMANDS

‘Sec.

‘10171. Army Reserve Command.

‘10172. Naval Reserve Command.

‘10173. Marine Forces Reserve.

‘10174. Air Force Reserve Command.

‘Sec. 10171. Army Reserve Command

‘(a) ESTABLISHMENT OF COMMAND- There is in the Army an Army Reserve Command, which shall be operated as a separate command of the Army. The Secretary of the Army shall maintain that command with the advice and assistance of the Chief of Staff of the Army.

‘(b) COMMANDER- The Chief of Army Reserve is the commander of the Army Reserve Command. The commander of the Army Reserve Command reports directly to the Chief of Staff of the Army.

‘(c) DEPUTY COMMANDER; CHIEF OF STAFF- (1) There is a deputy commander of the Army Reserve Command. The deputy commander holds the grade of major general shall and be appointed from members of the Army Reserve in general officer grades.

‘(2) There is a chief of staff of the Army Reserve Command. The chief of staff holds the grade of brigadier general and shall be appointed from members of the Army Reserve in the grade of colonel or above.

‘(d) ASSIGNMENT OF FORCES- The Secretary of the Army shall assign to the Army Reserve Command all forces of the Army Reserve.

‘Sec. 10172. Naval Reserve Command

‘(a) ESTABLISHMENT OF COMMAND- There is in the Navy a Naval Reserve Command, which shall be operated as a separate command of the Navy. The Secretary of the Navy shall maintain that command with the advice and assistance of the Chief of Naval Operations.

‘(b) COMMANDER- The Chief of Naval Reserve is the commander of the Naval Reserve Command. The commander of the Naval Reserve Command reports directly to the Chief of Naval Operations.

‘(c) DEPUTY COMMANDER; CHIEF OF STAFF- (1) There is a deputy commander of the Naval Reserve Command. The deputy commander holds the grade of rear admiral and shall be appointed from members of the Naval Reserve in flag officer grades.

‘(2) There is a chief of staff of the Naval Reserve Command. The chief of staff holds the grade of rear admiral (lower half) and shall be appointed from members of the Naval Reserve in the grade of captain or above.

‘(d) ASSIGNMENT OF FORCES- The Secretary of the Navy shall assign to the Naval Reserve Command all forces of the Naval Reserve.

‘Sec. 10173. Marine Forces Reserve

‘(a) ESTABLISHMENT- There is in the Marine Corps a command known as the Marine Forces Reserve. The Secretary of the Navy shall maintain that command with the advice and assistance of the Commandant of the Marine Corps.

‘(b) COMMANDER- The Commander, Marine Forces Reserve, reports directly to the Commandant of the Marine Corps.

‘(c) DEPUTY COMMANDER- There is a deputy commander of the Marine Forces Reserve. The deputy commander holds the grade of brigadier general and shall be appointed from members of the Marine Corps Reserve in the grade of colonel or above.

‘(d) ASSIGNMENT OF FORCES- The Commandant of the Marine Corps shall assign to the Marine Forces Reserve specified portions of the Marine Corps Reserve.

‘Sec. 10174. Air Force Reserve Command

‘(a) ESTABLISHMENT OF COMMAND- There is in the Air Force an Air Force Reserve Command, which shall be operated as a separate command of the Air Force. The Secretary of the Air Force shall maintain that command with the advice and assistance of the Chief of Staff of the Air Force.

‘(b) COMMANDER- The Chief of Air Force Reserve is the commander of the Air Force Reserve Command. The commander of the Air Force Reserve Command reports directly to the Chief of Staff of the Air Force.

‘(c) DEPUTY COMMANDER; CHIEF OF STAFF- (1) There is a deputy commander of the Air Force Reserve Command. The deputy commander holds the grade of major general and shall be appointed from members of the Air Force Reserve in general officer grades.

‘(2) There is a chief of staff of the Air Force Reserve Command. The chief of staff holds the grade of brigadier general and shall be appointed from members of the Air Force Reserve in the grade of colonel or above.

‘(d) ASSIGNMENT OF FORCES- The Secretary of the Air Force shall assign to the Air Force Reserve Command all forces of the Air Force Reserve.’.

(2) The tables of chapters at the beginning of part I of such subtitle and at the beginning of such subtitle are each amended by inserting after the item relating to chapter 1005 the following new item:

(c) IMPLEMENTATION REPORT- (1) Not later than 60 days after the date of the enactment of this Act, the Secretary of Defense shall submit to the congressional defense committees a report on the plans of the Secretary for implementation of chapter 1006 of title 10, United States Code, as added by subsection (a).

(2) For purposes of this subsection, the term ‘congressional defense committees’ means--

(A) the Committee on National Security and the Committee on Appropriations of the House of Representatives; and

(B) the Committee on Armed Services and the Committee on Appropriations of the Senate.

(d) IMPLEMENTATION SCHEDULE- Implementation of chapter 1006 of title 10, United States Code, as added by subsection (a), shall begin not later than 90 days after the date of the enactment of this Act and shall be completed not later than one year after such date.

SEC. 202. RESERVE COMPONENT CHIEFS.

(a) CHIEF OF ARMY RESERVE- Section 3038 of title 10, United States Code, is amended to read as follows:

‘(a) ESTABLISHMENT OF OFFICE; CHIEF OF ARMY RESERVE- There is in the executive part of the Department of the Army an Office of the Army Reserve, which is headed by a Chief of Army Reserve. The Chief of Army Reserve--

‘(1) is the principal adviser on Army Reserve matters to the Chief of Staff and the Assistant Secretary of the Army with responsibility for reserve affairs; and

‘(2) is the commander of the Army Reserve Command.

‘(b) APPOINTMENT- The President, by and with the advice and consent of the Senate, shall appoint the Chief of Army Reserve from officers of the Army Reserve who are not on active duty, or who are on active duty under section 10211 of this title, and who--

‘(1) have had at least 10 years of commissioned service in the Army Reserve;

‘(2) are in a grade above colonel; and

‘(3) have been recommended by the Secretary of the Army.

‘(c) TERM OF OFFICE; GRADE- (1) The Chief of Army Reserve holds office for four years, but may be removed for cause at any time. In time of war or during a national emergency declared by Congress, the Chief may be reappointed for a term of not more than four years.

‘(2) The Chief of Army Reserve, while so serving, has the grade of lieutenant general in the Army Reserve without vacating his permanent grade.

‘(d) DEPUTY CHIEFS OF ARMY RESERVE- There are two Deputy Chiefs of Army Reserve, one of whom shall be in the grade of major general and shall be appointed from officers in the Army Reserve in general officer grades and one of whom shall be in the grade of brigadier general and shall be appointed from members of the Army Reserve in the grade of colonel or above.

‘(e) BUDGET- The Chief of Army Reserve is the official within the executive part of the Department of the Army who, subject to the authority, direction, and control of the Secretary of the Army and the Chief of Staff, is responsible for preparation, justification, and execution of budgets for the Army Reserve. As such, the Chief of Army Reserve is the director and functional manager of appropriations made for the Army Reserve (including appropriations for personnel, for operations and maintenance, for procurement, and for construction).

‘(f) FULL TIME SUPPORT PROGRAM- The Chief of Army Reserve manages, with respect to the Army Reserve, the personnel program of the Department of Defense known as the Full Time Support Program.

‘(g) ANNUAL REPORT TO CONGRESS- (1) The Chief of Army Reserve shall submit to Congress an annual report on the status of the Army Reserve. The report shall include descriptions of--

‘(A) the roles and missions of the Army Reserve;

‘(B) the structure of the Army Reserve; and

‘(C) the readiness of the Army Reserve to carry out assigned missions.

‘(2) The annual report under paragraph (1) shall be submitted through the Secretary of the Army and shall be submitted each year with the submission of budget justification information provided by the Department of Defense to Congress for the next fiscal year.’.

(2) The item relating to that section in the table of sections at the beginning of chapter 305 of such title is amended to read as follows:

‘3038. Office of Army Reserve: appointment of Chief; Deputy Chiefs.’.

(b) CHIEF OF NAVAL RESERVE- (1) Chapter 513 of such title is amended by inserting after section 5142a the following new section:

‘(a) ESTABLISHMENT OF OFFICE; CHIEF OF NAVAL RESERVE- There is in the executive part of the Department of the Navy an Office of the Naval Reserve, which is headed by a Chief of Naval Reserve. The Chief of Naval Reserve--

‘(1) is the principal adviser on Naval Reserve matters to the Chief of Naval Operations and the Assistant Secretary of the Navy with responsibility for reserve affairs; and

‘(2) is the commander of the Naval Reserve Command.

‘(b) APPOINTMENT- The President, by and with the advice and consent of the Senate, shall appoint the Chief of Naval Reserve from officers of the Naval Reserve who are not on active duty, or who are on active duty under section 10211 of this title, and who--

‘(1) have had at least 10 years of commissioned service in the Naval Reserve;

‘(2) are in a grade above captain; and

‘(3) have been recommended by the Secretary of the Navy.

‘(c) TERM OF OFFICE; GRADE- (1) The Chief of Naval Reserve holds office for four years, but may be removed for cause at any time. In time of war or during a national emergency declared by Congress, the Chief may be reappointed for a term of not more than four years.

‘(2) The Chief of Naval Reserve, while so serving, has the grade of vice admiral in the Naval Reserve without vacating his permanent grade.

‘(d) DEPUTY CHIEFS OF NAVAL RESERVE- There are two Deputy Chiefs of Naval Reserve, one of whom shall be in the grade of rear admiral and shall be appointed from officers in the Naval Reserve in flag officer grades and one of whom shall be in the grade of rear admiral (lower half) and shall be appointed from members of the Naval Reserve in the grade of captain or above.

‘(e) BUDGET- The Chief of Naval Reserve is the official within the executive part of the Department of the Navy who, subject to the authority, direction, and control of the Secretary of the Navy and the Chief of Naval Operations, is responsible for preparation, justification, and execution of budgets for the Naval Reserve. As such, the Chief of Naval Reserve is the director and functional manager of appropriations made for the Naval Reserve (including appropriations for personnel, for operations and maintenance, for procurement, and for construction).

‘(f) FULL TIME SUPPORT PROGRAM- The Chief of Naval Reserve manages, with respect to the Naval Reserve, the personnel program of the Department of Defense known as the Full Time Support Program.

‘(g) ANNUAL REPORT TO CONGRESS- (1) The Chief of Naval Reserve shall submit to Congress an annual report on the status of the Naval Reserve. The report shall include descriptions of--

‘(A) the roles and missions of the Naval Reserve;

‘(B) the structure of the Naval Reserve; and

‘(C) the readiness of the Naval Reserve to carry out assigned missions.

‘(2) The annual report under paragraph (1) shall be submitted through the Secretary of the Navy and shall be submitted each year with the submission of budget justification information provided by the Department of Defense to Congress for the next fiscal year.’.

(2) The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 5142a the following new item:

(c) CHIEF OF MARINE CORPS RESERVE- (1) Chapter 513 of such title is amended by inserting after section 5143 (as added by subsection (b)) the following new section:

‘Sec. 5144. Office of Marine Forces Reserve: appointment of Commander

‘(a) ESTABLISHMENT OF OFFICE; COMMANDER, MARINE FORCES RESERVE- There is in the executive part of the Department of the Navy an Office of the Marine Forces Reserve, which is headed by the Commander, Marine Forces Reserve. The Commander, Marine Forces Reserve--

‘(1) is the principal adviser to the Commandant on Marine Corps Reserve matters and

‘(2) is the commander of the Marine Forces Reserve.

‘(b) TERM OF OFFICE; GRADE- (1) The Commander, Marine Forces Reserve, holds office for a term determined by the Commandant of the Marine Corps.

‘(2) The Commander, Marine Forces Reserve, while so serving, has the grade of lieutenant general, except that if the Commandant of the Marine Corps recommends to the Secretary of the Navy that such position be held by an offficer in the grade of major general, such position may be held by an officer in that grade.

‘(d) ANNUAL REPORT TO CONGRESS- (1) The Commandant of the Marine Corps shall submit to Congress an annual report on the status of the Marine Corps Reserve. The report shall include descriptions of--

‘(A) the roles and missions of the Marine Corps Reserve;

‘(B) the structure of the Marine Corps Reserve; and

‘(C) the readiness of the Marine Corps Reserve to carry out assigned missions.

‘(2) The annual report under paragraph (1) shall be submitted through the Secretary of the Navy and shall be submitted each year with the submission of budget justification information provided by the Department of Defense to Congress for the next fiscal year.’.

(2) The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 5143 (as added by subsection (b)) the following new item:

‘5144. Office of Marine Forces Reserve: appointment of Commander.’.

(d) CHIEF OF AIR FORCE RESERVE- Section 8038 of such title is amended to read as follows:

‘(a) ESTABLISHMENT OF OFFICE; CHIEF OF AIR FORCE RESERVE- There is in the executive part of the Department of the Air Force an Office of the Air Force Reserve, which is headed by a Chief of Air Force Reserve. The Chief of Air Force Reserve--

‘(1) is the principal adviser on Air Force Reserve matters to the Chief of Staff and the Assistant Secretary of the Air Force with responsibility for reserve affairs; and

‘(2) is the commander of the Air Force Reserve Command.

‘(b) APPOINTMENT- The President, by and with the advice and consent of the Senate, shall appoint the Chief of Air Force Reserve from officers of the Air Force Reserve who are not on active duty, or who are on active duty under section 10211 of this title, and who--

‘(1) have had at least 10 years of commissioned service in the Air Force Reserve;

‘(2) are in a grade above colonel; and

‘(3) have been recommended by the Secretary of the Air Force.

‘(c) TERM OF OFFICE; GRADE- (1) The Chief of Air Force Reserve holds office for four years, but may be removed for cause at any time. In time of war or during a national emergency declared by Congress, the Chief may be reappointed for a term of not more than four years.

‘(2) The Chief of Air Force Reserve, while so serving, has the grade of lieutenant general in the Air Force Reserve without vacating his permanent grade.

‘(d) DEPUTY CHIEFS OF AIR FORCE RESERVE- There are two Deputy Chiefs of Air Force Reserve, one of whom shall be in the grade of major general and shall be appointed from officers in the Air Force Reserve in general officer grades and one of whom shall be in the grade of brigadier general and shall be appointed from members of the Air Force Reserve in the grade of colonel or above.

‘(e) BUDGET- The Chief of Air Force Reserve is the official within the executive part of the Department of the Air Force who, subject to the authority, direction, and control of the Secretary of the Air Force and the Chief of Staff, is responsible for preparation, justification, and execution of budgets for the Air Force Reserve. As such, the Chief of Air Force Reserve is the director and functional manager of appropriations made for the Air Force Reserve (including appropriations for personnel, for operations and maintenance, for procurement, and for construction).

‘(f) FULL TIME SUPPORT PROGRAM- The Chief of Air Force Reserve manages, with respect to the Air Force Reserve, the personnel program of the Department of Defense known as the Full Time Support Program.

‘(g) ANNUAL REPORT TO CONGRESS- (1) The Chief of Air Force Reserve shall submit to Congress an annual report on the status of the Air Force Reserve. The report shall include descriptions of--

‘(A) the roles and missions of the Air Force Reserve;

‘(B) the structure of the Air Force Reserve; and

‘(C) the readiness of the Air Force Reserve to carry out assigned missions.

‘(2) The annual report under paragraph (1) shall be submitted through the Secretary of the Air Force and shall be submitted each year with the submission of budget justification information provided by the Department of Defense to Congress for the next fiscal year.’.

(2) The item relating to that section in the table of sections at the beginning of chapter 805 of such title is amended to read as follows:

‘8038. Office of Army Reserve: appointment of Chief; Deputy Chiefs.’.

(e) CONFORMING AMENDMENT- Section 641(1)(B) of such title is amended by inserting ‘5143, 5144,’ after ‘3038,’.

SEC. 203. GRADE OF VICE CHIEF OF THE NATIONAL GUARD BUREAU.

Section 10505(c) of title 10, United States Code, is amended by striking out ‘major general’ and inserting in lieu thereof ‘lieutenant general’.

SEC. 204. GRADE FOR RESERVE PERSONNEL CENTER COMMANDERS.

(a) IN GENERAL- Chapter 1007 of title 10, United States Code, is amended by adding at the end the following new section:

‘Sec. 10216. Reserve personnel centers: grade of commander

‘The commanders of the reserve personnel centers for the Army Reserve, the Air Force Reserve, and the Marine Corps Reserve shall each be a Reserve officer in the grade of brigadier general. The commander of the reserve personnel center for the Naval Reserve shall be a Reserve officer in the grade of rear admiral (lower half).’.

(b) CLERICAL AMENDMENT- The table of sections at the beginning of such chapter is amended by adding at the end the following new item:

Section 526 of title 10, United States Code, is amended by adding at the end the following new subsection:

‘(e) A Reserve general or flag officer serving on active duty under section 10203, 10211, or 12301(d) of this title or who is on active duty but is excluded from the active-duty list under section 641(1)(B) of this title may not be counted against any ceiling established by law or by administrative action on--

‘(1) the total number of general or flag officers who may be serving on active duty in the Army, Navy, Air Force, or Marine Corps;

‘(2) the total number of general or flag officers who may be serving on active duty in any of those armed forces; or

‘(3) the number of officers who may be serving on active duty in a particular general or flag officer grade.’.

SEC. 206. GUARD AND RESERVE TECHNICIANS.

(a) IN GENERAL- Chapter 1007 of title 10, United States Code, is amended by adding after section 10216, as added by section 203, the following new section:

‘Sec. 10217. Military (civilian) technicians: number of positions

‘(a) LIMITATION ON REDUCTIONS- The total number of positions authorized for personnel classified military (civilian) technicians of the Army National Guard, the Air National Guard, the Army Reserve, and the Air Force Reserve may not be reduced below the number specified in subsection (b) for the purpose of applying any administratively imposed civilian personnel ceiling, freeze, or reduction on such technician positions, unless such reduction is a direct result of a reduction in reserve component force structure.

‘(b) BASELINE NUMBER- The number referred to in subsection (a) is the total number of positions referred to in that subsection that are authorized as of the date of the enactment of this section.’.

(b) CLERICAL AMENDMENT- The table of sections at the beginning of such chapter is amended by adding after the item relating to section 10217, as added by section 203, the following new item:

‘10217. Military (civilian) technicians: number of positions.’.

SEC. 207. CONFORMING AMENDMENT.

Section 641(1)(B) of title 10, United States Code, as amended by section 202(e), is amended by striking out ‘10501’ and inserting in lieu thereof ‘section 10502, 10505, 10506’.

TITLE III--RESERVE COMPONENT ACCESSIBILITY

SEC. 301. AUTHORITY TO ACTIVATE READY RESERVE INTO ACTIVE SERVICE.

(a) REVISED AUTHORITY- Section 12302 of title 10, United States Code, is amended to read as follows:

‘(a) PRESIDENTIAL AUTHORITY- (1) If the President determines that augmentation of the active forces is necessary for a purpose specified in paragraph (2), the President may provide Reserve activation authority with respect to any of the reserve components.

‘(2) The circumstances referred to in paragraph (1) are the following:

‘(A) In time of national emergency declared by the President.

‘(B) When necessary to provide Federal disaster relief to a State, when requested by the Governor of the State.

‘(C) When otherwise authorized by law.

‘(3) In this section, the term ‘Reserve activation authority’ means authority provided by the President to the Secretary of Defense, or to the Secretary of Transportation with respect to the Coast Guard when it is not operating as a service of the Navy, to order to active duty (other than for training) without the consent of the members concerned (A) any unit of the Ready Reserve, and (B) any member of the Ready Reserve not assigned to a unit organized to serve as a unit.

‘(b) PRIOR NOTICE TO CONGRESS- Whenever the President intends to provide Reserve activation authority under the authority of this section, the President shall, not less than 48 hours before providing such authority, transmit to Congress a report, in writing, giving notice

of the proposed exercise of authority and setting forth the circumstances necessitating the provision of Reserve activation authority. In the report, the President shall--

‘(1) identify the units or members expected to be ordered to active duty or active Federal service;

‘(2) describe the anticipated use of those units or members on active duty or in active Federal service and the anticipated length of time the units or members will be required; and

‘(3) specify why the mission cannot be accomplished through the use of active component units.

‘(c) TIME LIMITATION FOR ACTIVATION- (1) When Reserve activation authority is provided under subsection (a), the Secretary of Defense, and the Secretary of Transportation with respect to the Coast Guard when it is not serving as a service in the Navy, may, without the consent of the persons concerned, order any unit, and any member not assigned to a unit organized to serve as a unit, in the Ready Reserve under the jurisdiction of that Secretary, to active duty (other than for training), for a period not to exceed 24 consecutive months.

‘(2) When a unit or member is ordered to active duty or active Federal service under paragraph (1), the Secretary concerned shall submit to Congress a report, in writing, giving notice of such order and stating the period of time for which the unit or member is ordered to active duty or active Federal service.

‘(3) If an extension beyond the period specified in a report under paragraph (2) is subsequently ordered for any such unit or member, the Secretary shall, not less than seven days before the extension becomes effective, submit to Congress a report, in writing, giving notice of the extension.

‘(d) QUARTERLY REPORTS TO CONGRESS- (1) Whenever Reserve activation authority under subsection (a) is in effect, the President shall, within two working days of the close of each fiscal year quarter during which units or members of the Ready Reserve are on active duty or in active Federal service pursuant to the exercise of that authority, transmit to Congress a report regarding the necessity for those units or members being retained on active duty or in active Federal service, as the case may be.

‘(2) The President shall include in each such report the following:

‘(A) A statement of the mission of each such unit so ordered to active duty or active Federal service.

‘(B) An evaluation of each such unit’s performance of that mission.

‘(C) A description where each such unit is deployed (or being deployed, if in transit) at the time of the report.

‘(D) An explanation of why the mission cannot be accomplished by regular force units.

‘(E) A statement of the number of members so ordered to active duty, shown for members so ordered as members of units and for members who are not assigned to units organized to serve as units.

‘(F) Any other information that the President considers appropriate regarding each such unit.

‘(e) NUMERIC LIMIT- Not more than 1,000,000 members of the Ready Reserve may be on active duty (other than for training) without their consent under this section at any one time.

‘(f) POLICIES AND PROCEDURES- The Secretary of Defense shall prescribe such policies and procedures as the Secretary considers necessary to carry out this section. Such policies and procedures shall be prescribed in coordination with the Secretary of Transportation, insofar as they relate to the Coast Guard when not serving as part of the Navy.’.

(b) RELEASE FROM ACTIVE DUTY- Chapter 1209 of such title is amended by inserting after section 12304 the following new sections:

‘Sec. 12304a. Release from active duty

‘(a) POLICIES AND PROCEDURES- The Secretary of Defense shall prescribe policies and procedures for the release from active duty of units and members ordered to active duty under section 12302, 12303, or 12304 of this title. Such policies and procedures shall be prescribed in coordination with the Secretary of Transportation, insofar as they relate to the Coast Guard when not serving as part of the Navy.

‘(b) MATTERS TO BE INCLUDED- Those policies and procedures shall--

‘(1) contain specific guidelines that units and members so ordered to active duty should be retained on active duty only when no active component unit or active component member is available to perform the mission that the reserve component unit or member would otherwise perform; and

‘(2) take into account the effects of continuation of such units and members on active duty on civilian employment (including hardships to employers) and on family members.

‘(c) TERMINATION OF ACTIVATION- Whenever a unit of the Ready Reserve or a member of the Ready Reserve not assigned to a unit organized to serve as a unit is ordered to active duty under section 12304 of this title, the service of all units or members so ordered to active duty may be terminated--

‘(1) by order of the President, or

‘(2) by law.

‘Sec. 12304b. Limitation on frequency of activation of units and members

‘(a) LIMITATION ON FREQUENT ACTIVATIONS- Except as provided in subsection (b), a unit of the Ready Reserve of a reserve component, or a member of the Ready Reserve not assigned to a unit organized to serve as a unit, may not be ordered to active duty under section 12302 or 12304 of this title more than once in any 24-month period.

‘(b) WAIVER AUTHORITY- (1) The President may waive the limitation in subsection (a) with respect to any unit or member upon a determination by the President that unit or member has a capability that is urgently required and that is not otherwise available.

‘(2) Before any such waiver is effective, the President shall transmit to Congress a report, in writing, giving notice of the waiver and stating the basis for the determination by the President under paragraph (1) that formed the basis for the waiver.’.

(c) CLERICAL AMENDMENT- The table of sections at the beginning of such chapter is amended by striking out the items relating to sections 12302, 12303, and 12304 and inserting in lieu thereof the following:

‘12304. Selected Reserve: order to active duty other than during war or national emergency.

‘12304a. Release from active duty.

‘12304b. Limitation on frequency of activation of units and members’.

(c) CONFORMING AMENDMENT- Section 641(1)(E) of such title is amended by striking out ‘section 12304’ and inserting in lieu thereof ‘section 12302, section 12303, section 12304,’.

SEC. 302. REPORT TO CONGRESS CONCERNING TAX INCENTIVES FOR EMPLOYERS OF MEMBERS OF RESERVE COMPONENTS.

Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall submit to Congress a report setting forth a draft of legislation to provide tax incentives to employers of members of reserve components in order to compensate employers for absences of those employees due to required or involuntary training and for absences due to performance of required or involuntary active duty.

SEC. 303. REPORT TO CONGRESS CONCERNING INCOME INSURANCE PROGRAM FOR ACTIVATED RESERVISTS.

Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall submit

to Congress a report setting forth a draft of legislation to establish an income insurance program to provide members of reserve components who are ordered to active duty or active Federal service (other than for training) income replacement for loss of income during the period of such activation and, in the case of such a member who owns a business, income replacement for the business and for employees of that member or business who have a loss of income during the period of such activation attributable to the activation of the member.

SEC. 304. REPORT TO CONGRESS CONCERNING SMALL BUSINESS LOANS FOR MEMBERS RELEASED FROM RESERVE SERVICE DURING CONTINGENCY OPERATIONS.

Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall submit to Congress a report setting forth a draft of legislation to establish a small business loan program to provide members of reserve components who are ordered to active duty or active Federal service (other than for training) during a contingency operation (as defined in section 101 of title 10, United States Code) low-cost loans to assist those members in retaining or rebuilding businesses that were affected by their service on active duty or in active Federal service.

TITLE IV--RESERVE COMPONENT RESOURCES

(a) IN GENERAL- (1) Chapter 1013 of title 10, United States Code, is amended by adding at the end the following new section:

‘Sec. 10543. Funding shortfalls in budget: annual report

‘The Secretary of Defense shall include in the annual report to Congress under section 113(c) of this title a report on any shortfall or anticipated shortfall in funding for reserve component personnel, operations and maintenance, equipment, or military construction in the budget for the fiscal year beginning in the year in which the report is submitted.’.

(b) CLERICAL AMENDMENT- The table of sections at the beginning of such chapter is amended by adding at the end the following new item:

‘10543. Funding shortfalls in budget: annual report.’.

SEC. 402. ALLOCATION OF FUNDS APPROPRIATED FOR RESERVE COMPONENTS.

(a) LIMITATION- Any amount appropriated for the Department of Defense for any reserve component shall be allocated by the Secretary of Defense to the use of that reserve component for the purposes provided by Congress. Any funds in a reserve component appropriation account may be transferred to an appropriation account for one of the active components only if the transfer of such amount from such reserve component account to such active component account is specifically authorized by law.

(b) IDENTIFICATION OF CERTAIN AMOUNTS IN RESERVE ACCOUNTS- The Secretary of Defense shall ensure that any amount in a reserve component appropriation account that is intended for military or civilian personnel of the active components for service in support of that reserve component shall be shown separately in budget justification documents and otherwise in appropriate documents in the budget process.

TITLE V--RESERVE FORCES SUSTAINMENT

Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall submit to Congress a report setting forth a draft of legislation to restore the tax deductibility of nonreimbursable expenses incurred by members of reserve components in connection with military service.

SEC. 502. AUTHORITY TO PAY TRANSIENT HOUSING CHARGES FOR MEMBERS PERFORMING ACTIVE DUTY FOR TRAINING AT LOCATIONS OVER 50 MILES FROM RESIDENCE.

Section 404(j)(1) of title 37, United States Code, is amended by striking out ‘annual training duty’ and inserting in lieu thereof ‘active duty for training, annual training duty’.

SEC. 503. SENSE OF CONGRESS CONCERNING QUARTERS ALLOWANCE DURING SERVICE ON ACTIVE DUTY FOR TRAINING.

It is the sense of Congress that the United States should continue to pay members of reserve components appropriate quarters allowances during periods of service on active duty for training.

SEC. 504. SENSE OF CONGRESS CONCERNING MILITARY LEAVE POLICY.

It is the sense of Congress that military leave policies in effect as of the date of the enactment of this Act with respect to members of the reserve components should not be changed.

SEC. 505. GROUP DENTAL INSURANCE PLAN FOR MEMBERS OF SELECTED RESERVE.

The Secretary of Defense shall seek to arrange for the establishment by a private-sector insurance carrier of a group dental insurance plan for members of the Selected Reserve and their dependents which would enable those members and their dependents to obtain dental care at a low cost.

SEC. 506. LOCAL COMMUNITY AND MILITARY PERSONNEL MUTUAL BENEFITS PROGRAM.

(a) IN GENERAL- Chapter 53 of title 10, United States Code, is amended by adding at the end the following new section:

‘Sec. 1060b. Local community and military personnel mutual benefits program

‘The Secretary of Defense shall seek to enter into an agreement with the appropriate national organization representing retail merchants under which that organization would sponsor a program for the provision of price discounts by participating retail merchants to members of the armed forces.’.

(b) CLERICAL AMENDMENT- The table of sections at the beginning of such chapter is amended by adding at the end the following new item:

‘1060b. Local community and military personnel mutual benefits program.’.

SEC. 507. COMMENDATION OF RESERVE FORCES POLICY BOARD.

(a) COMMENDATION- The Congress commends the Reserve Forces Policy Board, created by the Armed Forces Reserve Act of 1952 (Public Law 82-476), for its fine work in the past as an independent source of advice to the Secretary of Defense on all matters pertaining to the reserve components.

(b) SENSE OF CONGRESS- It is the sense of Congress that the Reserve Forces Policy Board and the reserve forces policy committees for the individual branches of the Armed Forces should continue to perform the vital role of providing the civilian leadership of the Department of Defense with independent advice on matters pertaining to the reserve components.

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